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Meeting Room

Board Minutes

IOWA LAKES ELECTRIC COOPERATIVE

Board of Directors Meeting

March 27, 2025

 

 

 

ONLINE MINUTES

 

The meeting of the Iowa Lakes Electric Cooperative Board of Directors was called to order at 10 a.m. by Board Chair Dan Winterhof on March 27, 2025, at the Cooperative’s headquarters in Estherville, Iowa. Executive Assistant Amy Howard assisted in the taking of minutes thereof. 

 

The following directors were present either in person or by video conference: Bruce Amundson, Ben Ashland, Jerry Beck, Chad Boysen, Craig Deim, Alan Madden, Crystal Pluth, Gary Rouse, Mark Tuttle, Trent Will, Roger Williamson and Dan Winterhof. Absent: Nick Kerns

 

Also present for the meeting were President and CEO Ryan Craig, Vice President of Operations and Engineering Aaron Ruschy, Vice President of Finance/CFO Shelly Tredway, Vice President of Customer and Corporate Relations Jen Sievert, Executive Assistant Amy Howard and Cooperative Attorney Scot Bauermeister.

 

Participating in a portion of the meeting was Principal Luke Greden with CliftonLarsonAllen and Heartland Security President Wendy Youngren.

 

AGENDA

 

Board Chair Winterhof asked if there were any additions to the Board Agenda. Being none, it was moved and seconded to approve the agenda. Motion carried.

 

MINUTES

 

Board Chair Winterhof asked if there were any changes or corrections to February 27, 2025, board minutes as provided. Being none, it was moved and seconded to approve the minutes. Motion carried.

 

Board Chair Winterhof declared the meeting duly organized for the transaction of Cooperative business.

 

UNFINISHED BUSINESS

 

Attorney Bauermeister reported there was no pending litigation.

 

NEW BUSINESS

 

2024 Audit Report

 

Board Chair Winterhof called upon Vice President Tredway to introduce Principal Luke Greden with CliftonLarsonAllen. Greden presented the firm’s annual audit report of the examination of the financial records of the Cooperative for the calendar year ending December 31, 2024. Greden reviewed the auditor’s duties and responsibilities along with management’s representations of the financial statements.

 

Greden stated the Cooperative’s audit for 2024 was presented as a “clean” audit opinion and there were no audit adjustments and no internal control issues identified during the audit. Greden also stated the Cooperative’s management team used solid judgement in their use of various accounting estimates.

 

Greden reviewed various items of interest related to the Cooperative’s financial statements and operating results. Discussion followed.

 

Executive Session with Auditor & Approval of Audit Report – Closed Session (Action)

 

At this time, Board Chair Winterhof requested the Board of Directors go into closed session. It was moved and seconded to go into closed session. Motion carried.

 

The staff were excused and left the meeting to allow the Board of Directors, as an “audit committee of the whole,” to consult further with Greden.

 

It was moved and seconded to come out of closed session. Motion carried.

 

It was moved and seconded to accept the 2024 audit report as presented. Motion carried.

 

Greden left the board meeting.

 

Heartland Security Update

 

Board Chair Winterhof called upon President and CEO Craig to introduce President Wendy Youngren with Heartland Security Services. Youngren provided an overview of Heartland Security including the company’s mission, history, products and services offered, marketing, work plan and budget and the President’s major initiatives. Discussion followed.

 

Youngren left the board meeting.

 

2024 Patronage Allocation (Action)

 

Board Chair Winterhof called upon Vice President Tredway to review the calendar year 2024 margins of the Cooperative and the proposed allocation of the 2024 margins in accordance with the Cooperative’s Restated Articles of Incorporation and in accordance with Iowa Code Section 449.30. Discussion followed as it concerns the current and prior years’ margin allocation history in accordance with and consistent with Cooperative Policy 203. Tredway discussed the options including her recommendation. Discussion followed.

 

Following discussion, it was moved and seconded to allocate the 2024 margins in accordance with the guidelines as follows:

  • $3,528,582 patronage assignable to the Class A members of which $1,843,582 (CBPC LIFO Roll) will be retired and returned to the membership in 2025, $400,000 will be retired and returned to the membership in 2025 and $1,285,000 to be eligible for retirement at a future date subject to Board discretion.

  • $1,000,000 to the Plant Replacement Reserve-electric

  • $500,000 to the Plant Replacement Reserve-wind

  • $97,575 to the Reserve for Contingent Losses

  • $1,392,066 to the Reserve for Statutory Surplus

  • $1,000 patronage assigned to Class B Members

 

Memberships for Approval (Action)

 

It was moved and seconded to approve the memberships as presented. Motion carried.

 

Quarterly Estate Patronage Retirements (Action)

 

Board Chair Winterhof called upon Vice President Tredway to present the following proposed estate retirements:

 

                          PATRONAGE               UNCLAIMED                   DISCOUNTED                PAYOUT

                          AMOUNT                     AMOUNT                       AMOUNT                   AMOUNT

9 applicants        $3,175.96                      $0.00                          $1,078.75                 $2,097.21

 

It was moved and seconded to approve the discounted estate retirements for the first quarter of 2025. Motion carried.

 

2025 Budget Presentation (Action)

 

Board Chair Winterhof called upon Vice President Tredway to review the proposed 2025 annual budget that has been prepared and distributed to the directors. Tredway stated information for consideration at year end includes:

 

  • Increase in revenues of 3% due to no Power Cost Adjustment and a projected increase in residential sales.

  • Three percent increase in purchased power due to rate increases from Corn Belt and NIPCO.

  • Projected $230,000 year-end load management rebate.

  • No electric margin rebate.

  • Projected year end 2025 operating margin of $1,260,000.

 

After thorough discussion and review, it was moved and seconded to approve the proposed budget for the year 2025. Motion carried.

                                                           

VP/CFO Financial Report

 

Vice President Tredway reviewed the financials for February 2025. Discussion followed.

 

ACRE/IOWA FORE

 

Board Chair Winterhof stated the ACRE/IOWA FORE authorization forms for anyone who would like to voluntarily contribute to the 2025 AEC/PAC®/FORE Campaign.

 

Vice President Reports

 

Vice President Ruschy reviewed his monthly report. Ruschy stated lineman Dave Grothaus accepted the energy advisor position for the Spencer service center. This leaves a lineman opening to fill in Pocahontas. The position has been posted internally and will open externally should we have no internal interest.

 

Vice President Sievert reviewed her monthly report including a recap of REC Day on the Hill. Sievert stated Dave Grothaus will start his new position as energy advisor for the Spencer service territory on April 1. Sievert informed the directors that Member Appreciation Luncheons will be held in June.

 

2025 Member Appreciation Dates/Locations are as follows:

June 3             Alta

June 4             Pocahontas

June 5             Emmetsburg

June 9             Spencer

June 12           Swea City

June 16           Estherville

 

Vice President Tredway reviewed her monthly report.

 

President and CEO Report

 

President and CEO Craig reviewed his monthly report which included a review of meetings he attended and a legislative session update.

 

G&T Reports

 

Basin – The Board of Directors viewed the video: March 2025 Basin Board Report. Director Beck provided a Basin report.

Corn Belt Power Cooperative – President & CEO Craig and Director Beck provided a Corn Belt report.

 

NIPCO – Secretary Will and President & CEO Craig provided a NIPCO report.

 

IAEC – Director Amundson provided a Statewide report.

 

DIRECTORS MEETINGS AND TRAINING REPORTS

 

Director Amundson provided a report on the Co-Bank Midwest Customer Meeting held March 3-4 in Omaha.

 

Vice President Ruschy and President/CEO Craig provided an overview of the NRECA PowerXchange/TechAdvantage held March 9-12 in Atlanta.

 

Chair Winterhof reported he attended the Foreman’s Meeting held on March 11.

 

MISCELLANEOUS

 

Board Chair Winterhof reminded everyone in attendance the next regularly scheduled Board of Directors meeting will be held at 7 p.m. on Thursday, April 24, 2025, at the Spencer Service Center.

 

Board Chair Winterhof requested miscellaneous items be brought before the Board of Directors for discussion and attention at this time.

 

Board Treasurer Pluth reviewed the journal of checks and master credit card statements issued for the month of February 2025 prior to the meeting.

 

Board Treasurer Pluth and Board Secretary Will reviewed and approved the director per diem forms for the month of March 2025.

 

ADJOURNMENT

 

There being no further business to be brought before the Board of Directors, it was moved and seconded to adjourn. Motion carried.

 

 

Approved April 24, 2025

 

Trent A. Will, Secretary

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